Witness Fitness Centreessentialmath.weebly.com/uploads/4/3/0/3/43030573/witness_fitnes… · of physical fitness were somewhat unappreciated by his students. Therefore, after a long

Student's Manual

Witness Fitness Centre An Accounting Simulation

for Students

Module 1: Business Startup Background Information

Chart of Accounts

Source Documents

Accounting Forms

Computer Instructions

C t 11 A D

School Accounting Modules Witness

Fitness

Centr

Background Information

Ted Winslow, a physical education teacher at a local high school, felt his efforts to promote high standards

of physical fitness were somewhat unappreciated by his students. Therefore, after a long summer of

contemplation, he decided to venture out into a business of his own. With some personal savings, a bank

loan, and a daring entrepreneurial spirit, the WITNESS FITNESS CENTRE was born. One nagging problem Ted did face was the bookkeeping: he was too busy to do it, and he was

concerned that hiring an accountant would be too expensive. A solution was dose at hand, however—you!

Since you are a beginning accounting student and a friend of the Winslow family, you offered to pefrform

the bookkeeping functions of the centre free of charge! Ted, who was slightly concerned that your

services would be worth the offered price, reluctantly agreed. The requirements are clear: Ted will give you the source document(s) for each transaction, you will

select the proper accounts to debit and credit, and then you will make an entry in the General journal.

After the transactions for the month of September are completed, you will post the data, prepare a trial

balance, and produce the financial statements—an income statement and a balance sheet.

idade-2- . CGA-Cattada .

Witness

Fitness

Centr

School Accounting Modules

Assets

CHART OF ACCOUNTS

Owner's Equity 101 Bank 301 Ted Winslow, Capital 105 A/R. Lynn Ayles 302 Ted Winslow, Drawings 106 A/R Betty Shantz 107 A/R Laura Coburn Revenue 108 A/R Judyjurnus 401 Membership Fees 125 Supplies 402 Drop-in Fees 150 Equipment 155 Furniture Expenses

Liabilities 501 Salaries Expense 505 Rent Expense

201 Bank Loan Payable 510 Advertising Expense 205 A/P Jim's Gymnastic Equipment 515 Renovations Expense 206 A/P Handyperson Hardware Ltd. 520 Loan Interest Expense 207 A/P Fun 'N' Fair Furniture Ltd. 525 Miscellaneous Expense 208 A/P Outstanding Office Supplies 530 Telephone Expense 209 AR Signs and Wonders Ltd. 535 Utilities Expense 210 A/P CWHY Radio Station 540 Choreography Expense 211 A/P Presto Printing 545 Bank Charges 212 A/A Tell Telephone Company 550 Bookkeeping Expense 240 GST Charged on Sales Note: It is Ted's desire to use the above account titles only. 245 OS! Paid on Purchases Also, when setting up the ledger, the following need

multiple accounts: GST Charged on Sales (3), GST Paid on Purchases (4), and Membership Fees (2).

CGA—Canada

Module 1 /page 3

To:

From: 0a1 Mk loalleeter

Magkelote

Date: 20-1 09 02

73 Current Sea Road Ciborea aril 1)8H 1L7

Commercial Bank 1 734-4344

Witness. Fitness . Centre Memtikanduin

bate: cf&? 2 20

Ple,ast Hard tA ter, long terswatweetifree at do lustre oi $5,000, ft

was demet e k t40 kt&reee ,ead wove Alai

-

On demand, after date for value received, I promise to pay the NORTH 49 COMMERCIAL BANK the sum of $ N000.00 payable at a monthly rate of 13% per annum.

Tad a .

Ted Winslow Witness Fitness Centte

Oaok 500)

COP-Canada Module 1/page 4

Date Seittehrien 20 —.I 1 FORM 4

002 Oit

Balance Forward Deposits

• 13 071

—

Total Deposits

Sub-total

Invoice (Pre-tax)

GST Portion

Other Cheque Amount

Balance

To Cigna eit #a#

For eachtear h'atitee—Nar ta Afrecarmair LP,

FORM 3

Date44Arier 2 20 —1

0 2,72 ,972

5 006— 10 OS-

-15-000- . . IC 15 000

1800 —

126 —

1926 — 13 071 —

For

Cheque Amount

Balance

To ?AA dee,aikg :leader Pent

001

Bdinde-TrdWar6 —

Deposits

-Total Deposits _

Sub-total

invoice (Pre-tax)

OST Portion Other

13 071

92 12 982

40\

CGA-Canada Module 1/page 5

e tibflo

619-'

(htoijA

u 1°

Date: b 4 20 L-± To: Oa, hyg hoar From: Id /Ay&

4 legvicp ailt4 tie neatiarehrefft, ta ape peemea for sow poomatko,

Plea ehrge de toady alfrOle& kW& #areltaan la, to a& Reirooveibire Era Am/wt.

711

Unit Amount Description Quantity

FORM 6

Witness Fitness Centre Memorandum

2572 Mate St. Cibarea City V4B GCB 430-9221

Hardware La

FORM?

60 litres Paint - Indoor/Outdoor 6.47 368.20 12 Indoor lights and fixtures 9.99 119.88

Paint brush 4.39 4.39

Sub-total 512.47 GST 7% 35.87

GST Registration No. 677639290 Total $548.34

Sold To: Witness Fitness Centre 10 Dun Street Ciborea City VGA 6L2

Date: See 4,-i Terms:

Order Number:

iNvoicE(aro DATE: zuf 09 03 TERMS: GST REr425039458 SOLD TO:

Witness Fitness Centre 10 Dun Street Ciborea City

PARTICULARS WIN IT PRICE - AMOUNT

6 Weight Sets 109.75 658.50 4 Exercise Bikes 213.60 854.40

Sub-total 1,512.90 GST 7% 105.90 Total $1,618.80

1003 POMMEL AVE. CIBOREA CITY V9Z 1M3 742-6904

FORMS •

Datay4d1_20_=/_

12 982 —

12 982 —

61UZ . H. 0/0

658 82

12 323 18

For

Total Deposits

Sub-total Invoice (Pre-tax) UST Fort! oil Other Cheque Amount Balance To ffee aee Oilleb tiallhfelfe

gpage, air*, make, ad er

lance Forward Deposits

FORM 9

FUN 'N' FAIR FURNITURE LTD. "ENJOY EXCITING STYLES AT REASONABLE PRICES"

4717 6TH AVE. tf Witness Fitness Centre CIBOR_EA CITY DATE: 20 09 04 TO: 10 Dun Street WH AY2 772-4119 TERMS: N/30

Ciborea City V8A 612 INVOICE: GST REG. NO. M39023902

Quantity Number Description Unit Price Amount

I #0314 Desk 215.00 215.00

5 #1214 Chairs 39.00 195.00 1 #0004 Sofa 302.72 302.72

Sub-total 712.72

OST 7% 49.89

Total 762.61

FORM 10

OiltStanding

SEW ties Office

2999 Oxford Ave. orea City -CibV2V 1X9

62 - Arisithic Win

i art.

,. Sold To: Witness Fitness Centre Date. s - 20:1 y 0 Dun Street Ciborea City V8A 6L2 -1 Term Net 30

Quanti% Description i Price Amount

1,000 20 lb bond paper - white 8.73 200 file folders 17.33/c 34 . 66

2,000 invoices 49.37/m 98 . 74

Sub-total 142 .13 GST 7% 9.95

GST Reg. #R839458219 Total 152 . 08

CGA-Canada-- Module-l/page 6

Parttcal

6224 Elm Street Ciborea City

V4L 1131 787-6333

Amo

1,115.12

$1,193.18

Sub-total

1,115.12 (1ST 7%

7 8 . 0 6

Total

FORM 13

GST No. R882923922

g

GOA—Canada Module 1/page 7

9776 Cannon Drive Cjipofea. City V8Y 2X2 F.78-1309

Quantity

hty Mo's arketing

bi?

Advertising Flyers 500

Net 30 Days C4sh

Mo's ,etbig

Description

FORM 12

SIGNS AND WONDERS LTD. We'll paint you a better profit picture

Witness Fitness Centre 10 Dun Street Ciborea City V8A 6L2

Invo. ate: 20-1 09 06 Te N/30

Billboard Rentals — One Month

Sold To: Witness Fitness Centre 10 Dun Street Ciborea City V8A 6L2 697-4007

Presto Printing

' Date: September6, 2 3947 Eton St. Terms: Nrt 30 days

l Ciborea City V8M 3P2 . 062472

Quantity Description Unit Price omit

500 8 1/2 X 11 sheets with letterhead .17 85.00 I) 500 envelopes .11 55.00

140.00 GST 7% 9.80

culteem,,,A. 108004M 149.80

Quantity

2

FORM 11

T Witness Fitness Centre 0 10 Dun Street

Ciborea City V8A 6L2 20-1 09 05

11zoice 556 GS g. 11459294029

Amount

265.00

Sub-total 265.00 GST 7% 18.55

Total 283.55

FORM 16

_

CGA-Canada Module- /page 8 - •

55.30

Total Deposits

Sub-total

Invoice (Pre-tax)

GST Portion

Other

Cheque Amount

Balance

To

For Noret BO Iffeatibee

746ertkenre4r

Balance Forward

Deposits •

I FORM 15.

790,00

. 10,819 83

11,665 13

845 30

Yin

Date 4• te-mew:8 20=i_

11,665 13

0007

Quantity Amount Description

350.00 5

350.00 24.50

374.50 GST 7% Total

FORM 14

Date: Invoice

GST reg. 4993883212 Terms: dash

Sold To: Witness Fitness Centre 10 Dun St. Ciborea City, V8A 612

Choreographed music tapes—aerobic theme

323 cambridge st. ciborea city v9u 4c4 788-4821

OUn vim&

Sub-total GST 7%

Received in Cash Amount Owed

illeCome a Fitness Viiiiteins" Quantity •

WitWeNS Fitness Centre

Particulars

10 Raw Street Ciborea City V8A 612

(703) 697-4007 •

Quarterly Membarshi:p t Mph peck -5/V\

Invoice: (0-991 Date: 2m•--1 09 10

Terms: Cash

GST Reg. No. 1t712367927

1.7

Amount 90 00

90 0 0 6 30

9 6 30 .

Yiu (

10,819 83 C\ V - -,

V V

-, c

or 10,819 83

1,215,50

8549

1,300 59

9,519 24

Other

Cheque Amount

Balance

To fiat gad For Stereo I itiore.4

Balance Forward

Deposits

Total Deposits

Sub-total

Invoice (Pre-tax)

GST Portion

stness Witness" "Become a Amount Particulars Quantity

CG A-Canada Module 1/page 9

Witness Fitness Centre

1 Quarterly Membership to Lynn Ayles 90 00

Sub-total 90 00 BST 7% 6 30

Received lit Cash 30 00 Amount Owed 65 30

Dategyteerier 13 20 -, FORM 20

cc Forward

Deposits

Total Deposits

Sub-total

Invoice (Pre-tax)

GST Portion

Other

Cheque Amount

Balance

To 7;74 0141(

FORM 19

Date Ye/ (Airier /320 —

9,519 24

00 96,30

9/11 300Q 126 30

9615 54

800 00 8 ,815 51

For /5/-ame4rairt.

Bolan Forwent

0 '1/4i)

Total Deposits

8,815 54

Sub-total

Invoice (Pre-tax)

GST Portion

Other

4845 51

Cheque Amount 600 00

Balance . 4245 51

To k:ragirciato For Powerafare

FORM 21

4,re Witness ' , \ .-• ta,Fitness - ”„,,, , e ix , i tilt Ow

fr° al dog' tolie. c tr r z

Weekly Summary of Drop-in Fees Week of Se/Coder

Monday Tuesday Wednesday Thursday Friday Saturday Totals

Brop-ht Fees 40- 60- 56- 52- 48 - 72- 328-

UST £80 4.20 3,92 3,69 3. 36 5.04 Z3,95

Totals 42,80 6420 59,92 55.69 51.36 7409 350,96

cy,s 0,"

Invoice 00024 Bate: I 09 11

Terms* GST Reg. No.

10 bun Street Ciborea City V84 612 (703) 697-4007

7927

FORM 22

Date c.fe,tearkte. 75 20 —7

8,215 51 .

9/13 350.96

33096

8,596 50

018 80 497/U 70

010

stance Forward

Deposits

Total Deposits

Sub-total

Invoice (Pre-tax)

GST Portion

Other

Cheque Amount

Rat nee

lb tiAiri/r growth ifarrinvt For fateeeenrot offaafinant

Particulars

Sub-total GST 7%

Received in Cash Amount Owed

Amount .

90 00

90 00 6 30 96 30

0 00

Quarterly Membership to Lisa Miller


"Become a Fitness Witness" Quantity

1

10 Bun Street Ciborea City VOA 612 (703) 6974007

23

Invoice: Bate:

Terms: Cash GST Beg. No. 11712367927

FORM 24


"Bee one a Fitness Witness'

10 Ben Street Ciborea City VOA 612 (703) 6974007

twereAce: 00044. Mt 20-1 09 19

limmun N/15 GST Beg. No. 11.712.367927

Particulars* Amount Qua

i

ntly '

Quarterly Membership to Betty Shantz 90 00

Sub-total 90 00 GST 7% 6 30

Received in Cash 30 00 Ammon Owed 66 30

CGA=Canada

Mod uloj lipage 10

co- Witness 1 Fitness

. 1 Centre .,.....:

-

. :„........_,..„....„....._ , .._,,...

Weekly Summary of Drop-in Fees. Week of si tehr,der N....._ 25r

1


" Drop-in Fees 18.00 56,00 61,00 18,00 56.00 80.0 352.00

CST 3,36 3.92 1,18 3,36 3,92 5,60 21,61

listals 5136 59,92 68.18 57,36 59,92 85,60 376,61

26

Invoice: 0005A Date:

'Corms: N/15 GST Reg. No. 11712367927

10 Dun Street Ciborea City V84 612 (703) 697-4007

Quantity Particulars

Amount

Gneconse a Fitness Witness"


Invoice #5612C GST No. 456920497 Sold To: Witness Fitness Centre 10 Dun Street Ciborea City V8A 6L2

AM Radio 4711 Airway Road Ciborea CttyV4P 2M1 732-0671

. Jr

rCte;9/- s, "ro

20-1 09 22

\

tir lipne r

\ JOT, f‘leo

Quantity Description Unit Price Amount

.12

A

I)'\

30 SEC. ADVERTISEMENTS 25.00

Sub-total

GST 7%

300.00

300.00

21.00 Cash Tenna

Xge .k1.30 .Total $321.00

FORM 25

1 Quarterly Membership to Laura Coburn 90 00

Sub-total 90 00

\JP‘

GST 7% Received in Cash

Amount Owed

6 30 30 00 66 30

cNcup

9° (p Owl

u:1)°

CGA—Canada Module 1/page 11

For gi-weetelenhy

28


Invoice: Date:

Terms GST Reg.

0006A 20-1 09 24

Become a fitness Witness" Quantity Particulars Amount

1 320 00 Annual Membership to Judy Jurnus

Suh-tatal 320 00 DST 7% 22 40

Received h: Cash 80 00 Amount Owed 262 40

10 Dun Street Cihorea City V8A 612 (703) 697-4007

0. R712367927

6,977 70

go clerte

kom 9456

9/25: 679 24

7656 94

800 —

6,856 94

FORM 29

Explanation: trot Z. >fee k At prrext of 'woad

Received by: 77(7 Date ev.25 20-1

Cash

Cheque

Amount $ 66.30 IR

\Otto

Total Deposits '

Sub-total

invoice (Pre-tax)

GST Portion

Other

Cheque Amount Balance

To Ott/0e

FORM 10

Date4teeries14 20_=/_ Witness Fitness Remittance Sli

Balance Forward

Deposi

30

GST Reg. # R450358933

0A4pAvvik

700 Extension Road Cib area City V30 2A7

Cintinciacial access line Phone rental •

NEW CHARGES ARE DUE ON OCTOBER 15, 20-1

Details Amount

g, 0 got° Rekoitte'd

42.00 4.50

46.50 Total New Charges GST 7% 3.26

Total Due 49.76

Statémeñt 1893

Account: Witness Fitness Centre Telephone: c703) 697-4007 BM Date: September 24, 20-1

Quantity

1 1

-CGA—Qaumla:-• Module 1/page-12- •

FORM 33

FORM 34

CGA-Canada

Module 1/page 13

Witness Fitness;;p.

*1-4 . Centre

li z

Weekly Stnannary

1

--e-e- -T --

of Drop-in Fees Week of Sytertrier 22-27, 204


Brop-ho. Fetes

UST 18M 3,36

61,00 1. 18

60.00 1,20

6140 1.18

56.00 3, 92

80,00 6,60

372.00 4V,01

Metals 5436 68,18 61.20 68.18 59.92 85.60 398,01

i or h 9 To: Witness Fitness Centre 10 Dun Street

al*akb. rai(a,

73 Current Sea Road Ciborea City V8A 6L2 Ciborea City WM 1L7

\.. Commercial Bank.' 734-4344 Date: 20-1 09 30

r

Your account has been charged with:

Interest on demand loan

Account Number: 0240121

Dollars Cents

103 29

-, Nor h 9 To: Witness Fitness Centre 10 Dun Street

Ra031111410;14TYS 73 Current Sea Road Ciborea City V8A 6L2 Ciborea City U8H ICI )

‘‘,.. Commercial Banl9 734-4344 Date: 20-1 09 30

Your account* has been charged with:

Monthly Service Charges

Account Number: 0240121

Dollars Cents

8 90 g(9

sem

elfelag koilerV For krat lot. ea

FORM 36 nate4te46,3020_,L._ 2

alaii e Forward

Deposits

Total Deposits

Sub-total

Invoice (Pre-tax)

GST Portion

Other

Cheque Amount

Balance

To 7;,-446rhaj

6,856 94 9/27 398,01

9/30 721 72

. 52276

,'37970

Tital kr/ cleht MAW oht* 9/30: 112 19

700 00 6,566 91

For PenthYdaga

FORM '37

Datercytearke 30 20=L

c.,\ .• %

6,566'91• (1C‘

) el

15 I‘ 6,566 W 456.78

31.97

488 75 6,07876 I— -....

Jeotna

Other

Cheque Amount

Balance

To Artie n/0 For g.tiorkeitir

Forw

Deposits

tt

Total Deposits

Sub-total

Invoice (Pre-tax

GST Portion

FORM IR

Dategeibt4trke30 20 —>

6,078 16

_

6,078 16

100 00 5978 16

Balance Forward

Deposits

Mfg. Sub-total

Invoice (Pre-tax).

. GST Portion

Other

Cheque Amount

Balance

To Oa

FORM 35

4,?

Centre e . ...„

Witness ) Fitness _.

..„....

Weekly Summary of arop-ht Fees Week of gettender 29-30, 20-7


Drop-in Fees 52.00 64,00 116,00

GST 3.61 4,48 8,12

Totals 55,64 68,48 124,12

CGA—Cariada

Module 1/page 14